How to build credit without a credit card?

You don’t always need to have a credit card yourself to start building credit. Other than becoming an authorized user on someone else’s credit card, or applying for a credit builder loan, there are a few other common ways to build your credit without actually getting a credit card.

• Report on-time payments for rent or utilities

You can make your bills work in your favor when it comes to building credit. Payment history is one of the factors that goes into your credit score, so if you can report your consistent, on-time rent payments to the three major credit bureaus, that will help you make progress. There are services out there that will report your good payment history to the bureaus so that you can use it to your advantage.

• Apply for a personal loan

Just like rent and utility payments, on-time loan payments can add to your positive payment history, which accounts for a little more than one-third of your credit score. A loan also improves your credit mix, or the variety of credit you have.

• Repay a loan you have already

If you already have a loan – like a student loan or a car loan – paying it off on time builds credit since these payments are reported to the credit bureaus.